SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): May 2, 2001
CHAPARRAL RESOURCES, INC.
(Exact Name of Registrant as Specified in Charter)
DELAWARE 0-7261 84-0630863
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
16945 Northchase, Suite 1620 77060
Houston, Texas (Zip Code)
(Address of Principal Executive Offices)
Registrant's telephone number, including area code: (281) 877-7100
Item 5. Other Events.
The following press release was issued by the Company on May 2, 2001, a
copy of which is included as Exhibit 99.1 and incorporated herein by this
reference:
Houston, Texas, May 2, 2001 -- Chaparral Resources, Inc. (NASDAQ: CHAR)
announced today it has received a Nasdaq Staff Determination stating its
common stock is subject to delisting from The Nasdaq SmallCap Market for
failing to comply with all marketplace guidelines required for continued
listing. The Nasdaq ruling is based upon Chaparral's failure to comply with
Nasdaq Marketplace Rules 4350(i)(1)(B) and 4350(i)(1)(D)(ii), which
required Chaparral to obtain stockholder approval prior to the conversion
of its 8% Non-Negotiable Subordinated Convertible Promissory Notes into
11,690,259 shares of our common stock on September 21, 2000 and the
issuance of 1,612,903 shares of common stock on October 30, 2000. These
transactions are described in detail in Chaparral's reports on Forms 10-Q
and 10-K as previously filed with the SEC. Nasdaq also expressed public
interest concerns under Marketplace Rules 4300 and 4330(a)(3) due to the
magnitude of conversion effected by Chaparral without stockholder approval.
Additionally, Chaparral did not have an annual stockholders meeting for the
fiscal year ended December 31, 1999, as required by Marketplace Rules
4350(e) and 4350(g).
Chaparral will exercise its right to appeal the Nasdaq ruling by requesting
an oral hearing before a Nasdaq Listing Qualifications Panel. During the
appeal process, Chaparral's common stock will continue to trade on the
Nasdaq SmallCap Market. There can be no assurance, however, the outcome of
the Nasdaq hearing will be favorable. If not, Nasdaq will delist our common
stock, which would be an event of default of our loan with Shell Capital
Limited. If we are determined to be in default of the loan and the default
is not waived by Shell Capital, our investment in the Karakuduk Field may
be lost. Furthermore, if we are delisted from Nasdaq, trading of our common
stock may be conducted on the OTC Bulletin Board.
Chaparral also reported that on May 1, 2001, Closed Type JSC Karakudukmunay
("KKM") set a company record of 8,700 barrels of oil delivered into the
KazTransOil export pipeline. In addition, gross oil sales in April 2001
reached approximately 197,000 barrels. KKM expects its gross capacity to
deliver production to be incrementally extended to approximately 8,500
barrels of oil per day by July 2001 and approximately 11,500 barrels of oil
per day before September 2001. At present, KKM has 24 productive wells in
the Karakuduk Field, of which 17 are new wells and 7 are re-completions of
previously existing delineation wells. KKM has successfully completed every
well drilled to date. KKM currently has one drilling rig and one workover
rig operating in the Karakuduk Field.
Chaparral Resources, Inc. is an international oil and gas exploration and
production company. Chaparral participates in the development of the
Karakuduk Field through KKM of which Chaparral is the operator. Chaparral
owns a 50% beneficial ownership interest in KKM with the other 50%
ownership interest being held by Kazakh companies, including KazakhOil, the
government-owned oil company.
Information Regarding Forward-Looking Statements: Except for historical
information contained herein, the statements in this Press Release are
forward-looking statements that are made pursuant to the safe harbor
provisions of the Private Securities Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks and
uncertainties which may cause the Chaparral's actual results in future
periods to differ materially from forecasted results. These risks and
uncertainties include, among other things, the ability of Chaparral to
secure financing, volatility of oil prices, product demand, market
competition, risks inherent in Chaparral's international operations,
imprecision of reserve estimates and Chaparral's ability to replace and
expand oil and gas reserves. These and other risks are described in the
Chaparral's Annual Report on Form 10-K and other filings with the
Securities and Exchange Commission.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits.
Number Exhibit
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99.1 Press Release, dated May 2, 2001, of Chaparral Resources, Inc.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the
Registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
CHAPARRAL RESOURCES, INC.
Date: May 4, 2001 By: /s/ Michael B. Young
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Michael B. Young, Treasurer and Controller